appraisal revision appraisal revision copyright © 2011 pearson education, inc. publishing as...

APPRAISAL REVISIONAPPRAISAL REVISION

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9–1


Basic Concepts in Basic Concepts in PerformancePerformance

Management and AppraisalManagement and AppraisalPerformance

Appraisal

Setting work standards, assessing

performance, and providing feedback

to employees to motivate, correct, and continue their

performance.

Performance Management

An integrated approach to

ensuring that an employee’s

performance supports and

contributes to the organization’s strategic aims.


Defining the Employee’s Defining the Employee’s Goals and Work StandardsGoals and Work Standards

Set SMART goals

Assign challenging

/ doable goals

Assign specific

goals

Guidelines for Effective

Goal Setting

Assign measurable

goals

Encourage participatio

n


Setting SMART GoalsSetting SMART Goals

• SSpecific, and clearly state the desired results.pecific, and clearly state the desired results.

• MMeasurable in answering “how much.”easurable in answering “how much.”

• AAttainable, and not too tough or too easy.ttainable, and not too tough or too easy.

• RRelevant to what’s to be achieved.elevant to what’s to be achieved.

• TTimely in reflecting deadlines and milestones.imely in reflecting deadlines and milestones.


An Introduction to Appraising An Introduction to Appraising PerformancePerformance

1

Is useful in career planning.

Plays an integral role in performance management.

Why Appraise Performance?

Is basis for pay and promotion decisions.

Helps in correcting deficiencies and reinforcing good performance.

2

3

4


Performance Appraisal RolesPerformance Appraisal Roles• The Supervisor’s RoleThe Supervisor’s Role

Usually do the actual appraisingUsually do the actual appraising

Must be familiar with basic Must be familiar with basic appraisal techniquesappraisal techniques

Must understand and avoid Must understand and avoid problems that can cripple problems that can cripple appraisalsappraisals

Must know how to conduct Must know how to conduct appraisals fairlyappraisals fairly


Performance Appraisal Roles Performance Appraisal Roles (cont’d)(cont’d)• The HR Department’s Role The HR Department’s Role

Serves a policy-making and advisory role.Serves a policy-making and advisory role.

Provides advice and assistance regarding the appraisal Provides advice and assistance regarding the appraisal tool to use.tool to use.

Trains supervisors to improve their appraisal skills.Trains supervisors to improve their appraisal skills.

Monitors the appraisal system effectiveness and Monitors the appraisal system effectiveness and compliance with EEO laws.compliance with EEO laws.


Effectively Appraising PerformanceEffectively Appraising Performance

1

Appraising performance

Steps in Appraising Performance

Defining the job and performance criteria

Providing feedback session

2

3


Designing the Appraisal ToolDesigning the Appraisal Tool• What to Measure?What to Measure?

Work output (quality and quantity)Work output (quality and quantity)

Personal competenciesPersonal competencies

Goal (objective) achievementGoal (objective) achievement

• How to Measure?How to Measure? Generic dimensionsGeneric dimensions

Actual job dutiesActual job duties

Behavioral competenciesBehavioral competencies


Performance Appraisal MethodsPerformance Appraisal Methods

1

2

3

4

5

Alternation ranking

Graphic rating scale

Paired comparison

Forced distribution

Critical incident

6

7

8

9

10

Behaviorally anchored rating scales (BARS)

Narrative forms

Management by objectives (MBO)

Computerized and Web-based performance appraisal

Merged methods

Appraisal Methodologies


Behaviorally Anchored Rating Scale Behaviorally Anchored Rating Scale (BARS)(BARS)Developing a BARSDeveloping a BARS

1.1. Write critical incidentsWrite critical incidents

2.2. Develop performance Develop performance dimensionsdimensions

3.3. Reallocate incidentsReallocate incidents

4.4. Scale the incidentsScale the incidents

5.5. Develop a final Develop a final instrumentinstrument

Advantages of BARSAdvantages of BARS A more accurate gaugeA more accurate gauge

Clearer standardsClearer standards

FeedbackFeedback

Independent dimensionsIndependent dimensions

ConsistencyConsistency


Management by Objectives (MBO)Management by Objectives (MBO)

• A comprehensive and formal organizationwide A comprehensive and formal organizationwide goal-setting and appraisal program requiring:goal-setting and appraisal program requiring:

1.1. Setting of organization’s goalsSetting of organization’s goals

2.2. Setting of departmental goalsSetting of departmental goals

3.3. Discussion of departmental goalsDiscussion of departmental goals

4.4. Defining expected results (setting individual goals)Defining expected results (setting individual goals)

5.5. Conducting periodic performance reviewsConducting periodic performance reviews

6.6. Providing performance feedbackProviding performance feedback


Using MBOUsing MBO

Setting unclear objective

Conflict with subordinates

over objectives

Potential Problems with MBO

Time-consuming appraisal process


Computerized and Web-Based Computerized and Web-Based Performance Appraisal SystemsPerformance Appraisal Systems

• Allow managers to keep notes on subordinates.Allow managers to keep notes on subordinates.• Notes can be merged with employee ratings.Notes can be merged with employee ratings.• Software generates written text to support appraisals.Software generates written text to support appraisals.• Allows for employee self-monitoring and self-evaluation.Allows for employee self-monitoring and self-evaluation.

• Electronic Performance Monitoring (EPM) SystemsElectronic Performance Monitoring (EPM) Systems Use computer network technology to allow managers access to Use computer network technology to allow managers access to

their employees’ computers and telephones.their employees’ computers and telephones. Managers can monitor the employees’ rate, accuracy, and time Managers can monitor the employees’ rate, accuracy, and time

spent working online.spent working online.


Dealing with Dealing with Performance Appraisal Performance Appraisal

ProblemsProblems

Unclear standards

Leniency or strictness

Halo effect

Potential Rating Scale Appraisal

Problems

Central tendency

Bias


Guidelines for Effective AppraisalsGuidelines for Effective Appraisals

Know the problems

Get agreement on a plan

Use the right tool

How to Avoid Appraisal Problems

Keep a diary

Be fair


TABLE 9–3 Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages

Graphic rating scale Simple to use; provides a quantitative rating for each employee.

Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems.

BARS Provides behavioral “anchors.” BARS is very accurate.

Difficult to develop.

Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales.

Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent.

Forced distribution method

End up with a predetermined number or % of people in each group.

Employees’ appraisal results depend on your choice of cutoff points.

Critical incident method

Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis.

Difficult to rate or rank employees relative to one another.

MBO Tied to jointly agreed-upon performance objectives.

Time-consuming.


Choosing the Right Appraisal ToolChoosing the Right Appraisal Tool

Accessibility AccuracyEase-of-useEmployee

acceptance

Criteria for Choosing an Appraisal Tool


Who Should Do the Appraising?Who Should Do the Appraising?

Self-rating

Subordinates

360-degree feedback

Potential Appraisers

Immediate supervisor

Peers

Rating committee


The Appraisal InterviewThe Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable

Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

Types of Appraisal Interviews


Appraisal Interview GuidelinesAppraisal Interview Guidelines

Talk in terms of objective work data

Get agreement

Don’t get personal

Encourage the person to

talk

Guidelines for Conducting an Interview


Handling Defensive ResponsesHandling Defensive Responses

1

Recognize your own limitations.

Never attack a person’s defenses.

How to Handle a Defensive Subordinate

Recognize that defensive behavior is normal.

Postpone action.

2

3

4


How to Deliver CriticismHow to Deliver Criticism

1

2

3

4

5

How to Criticize a Subordinate

Criticize in private, and do it constructively.

Do it in a manner that lets the person maintain his or her dignity and sense of worth.

Give daily feedback so that the review has no surprises.

Never say the person is “always” wrong.

Criticism should be objective and free of biases.


Performance ManagementPerformance Management• Performance ManagementPerformance Management

Is the continuous process of identifying, measuring, and Is the continuous process of identifying, measuring, and developing the performance of individuals and teams and developing the performance of individuals and teams and aligning their performance with the organization’s goals.aligning their performance with the organization’s goals.

• How Performance Management How Performance Management DiffersDiffers FromFrom PerformancePerformance Appraisal Appraisal

A continuous process for continuous improvementA continuous process for continuous improvement

A strong linkage of individual and team goals to strategic goalsA strong linkage of individual and team goals to strategic goals

A constant reevaluation and modification of work processesA constant reevaluation and modification of work processes


Basic Building Blocks of Basic Building Blocks of Performance ManagementPerformance Management

Direction sharing

Goal alignment

Ongoing performance monitoring

Rewards, recognition,

and compensation

Coaching and development

support

Ongoingfeedback

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